USD/JPY Technical outlook and review.

• The weekly timeframe shows price is trading around a long-term S/R flip level support at 101.206 with a positive close below yet to be seen.

• Buyers and sellers on the daily timeframe are currently trading within a range with resistance being seen above at 102.713 and daily demand seen below at 100.747-100.967.

A rally higher to the 4hr decision-point level at 101.754 has been seen as reported in the last analysis may happen. In all honesty the selling seen around the aforementioned 4hr decision-point level is not fantastic; we were definitely expecting a more powerful bearish reaction!

Something that is interesting though, take a look at that beautiful-looking tail (marked with an arrow), this tail/spike likely has consumed a load of buyers there, and potentially cleared the path for a bigger move to the downside. Very much like the Aussie pair, it is decision time on this pair, a break above this area could likely force price to test at the very least the round number 102.000, and with some buying effort, the 4hr supply area at 102.191-102.104. Conversely a reaction to the downside could bring prices possibly down to (if the majority of the buyers are indeed consumed around the D/S flip area at 101.400-101.465) the 101.227 area as this was an obvious area where pro money decided to advance price north.

Pending/P.A confirmation orders:

• Pending buy orders (Green line) are seen just above the round number 101.000 at 101.020. The reason for setting a pending buy order here is because we are currently trading around a weekly support level (101.206). We would not normally set a pending order around psychological levels such as these, but since we are in a great higher-timeframe location it is worth the risk.
• New pending buy orders (Green line) are seen just above the 101.227 area at 101.249. The reason a pending buy order has been set here is because this was clearly an area where pro money buyers decided to rally prices higher, thus opening the possibility of unfilled buy orders still being active there.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.

• Pending sell orders (Green line) are seen just below supply (103.294-102.983) at 102.953. A pending sell order was set here due to this being an area where likely unfilled sell orders are.
• The pending sell order (Green line) set just below a decision-point level (resistance, 101.754) at 101.696 is now active, so do keep an eye out for a first-take profit level set at 101.465.
• P.A confirmation sell orders (Red line) are seen just below supply (102-191-102.104) at 102.074. A P.A confirmation order was used here purely for the simple fact we are trading around a higher-timeframe weekly support level at 101.206 meaning we may see a small reaction, but nothing to write home about, hence the need for confirmation!